Hong Leong Bank Home Loan

About Hong Leong Bank

Hong Leong Bank Berhad is a financial services company with a presence in Malaysia and Singapore, Hong Kong, Vietnam, Cambodia, and China. With these outstanding achievements, Hong Leong Bank is known as Malaysia’s fifth-largest banking group by assets, with over RM237.1 billion in assets as of 30 June 2021, and fourth-largest by market capitalisation. Because of the importance of innovation and technology in our daily lives, Hong Leong Bank uses cutting-edge digital technology to provide a variety of meaningful financial products and services that meet the needs of its customers.

What is a home loan?

A home loan is a sum of money that you apply for or borrow from a bank to assist you in purchasing your dream home. Each loan will be charged an interest rate determined by the loan amount and the repayment period. So, keep in mind that each bank will have a different interest rate, and you should do some research before applying for a home loan.

What type of home loan does Hong Leong Bank offer?

Hong Leong Bank provides 7 types of home loans:

• Home Loan
• Solar Plus Loan
• MortgagePlus
• Shop Loan
• Skim Rumah Pertamaku
• Special Housing Loan
• Refinancing

What should I know before applying for a home loan?

• Interest rates

  You must be aware of the interest rates that the bank will charge you, either fixed interest rates or variable rates.

• Type of loan

  In Malaysia, there are 3 types of loans offered: term loan, semi loan, or flexi loan.

• Lock-in period

  Knowing the lock-in period is crucial because it often occurs when there is a sudden need for full settlement, refinancing, or selling your property.

• Margin of finance

  You must understand your margin of finance, which is the amount of money that a bank will allow you to borrow for your loan and how much cash/ upfront you must pay for the property.

• Fees

  The fees include legal fees, stamp duty charges, late payment fees, early settlement fees, and others.

• Type of bank

  The bank you have chosen to apply for a home loan with, as different banks offer different loan amounts, terms, etc. Choose a bank where you are comfortable applying for a home loan.

Who is eligible to apply for Hong Leong Bank home loans?

• Home Loan, MortgagePlus, Shop Loan & Refinancing
• Residential properties only
• Individuals only
• Solar Plus Loan
• New and existing customers of Hong Leong Housing Loans and Refinancing of Housing Loans from other financial institutions
• For residential properties worth RM400,000 or more
• Minimum monthly income of RM5,000
• Completed or under construction landed properties
• Skim Rumah Pertamaku
• Malaysian citizen
• Salaried employee or self-employed
• Individual or joint application is allowed
• First-time homebuyer for self-occupancy
• No evidence of impaired financing in the last 12 months
• All outstanding debt repayment obligations from banks and non-banks cannot exceed 60% of monthly income after statutory deductions
• Maximum monthly gross household income:
• RM300,000 property: RM5,000
• RM300,000 – RM500,000 property: RM5,000 (individual) | RM10,000 (joint)
• Special Housing Loan
• Individual
• First-time homebuyer for self-occupancy
• Maximum property price:
• Peninsular Malaysia: RM250,000
• Sabah and Sarawak: RM300,000

Why should I choose Hong Leong Bank home loans?

• It provides a variety of home loan financing options to suit your needs
• Enjoy flexible instalments at any time, and an alternative payment method is provided
• Get 110% financing for the property purchase price up to RM300,000 (Skim Rumah Pertamaku)*
• Get extra margin for MDTA Financing*
• Take advantage of the hassle-free application, in which the mortgage consultant will come to your home or office to assist you

*Depending on the selected home loan.

Who should I contact for further information about Hong Leong Bank home loans?

• Contact Hong Leong Bank at +60376268899
• Walk to the nearest Hong Leong Bank branches for more information or assistance with the Hong Leong Bank Home Loan

What are the documents required for Hong Leong Bank home loans?

• Home Loan
• Salaried employee
• Latest 3-month salary slip
• Latest Borang BE (supported by tax payment receipt)
• Latest EPF statement
• Latest 3-month bank statement/ Savings Account passbook
• Letter of employment
• Self-employed
• Latest 6-month bank statement/ Savings Account passbook
• Latest Borang B (supported with tax payment receipt)
• Latest 6-month commission statement
• MortgagePlus, Shop Loan & Refinancing
• Salaried employee
• Latest 3-month salary slip
• Latest Borang BE (supported by tax payment receipt)
• Latest EPF statement
• Latest 3-month bank statement
• Self-employed
• Latest 3/6-month salary slip/ credit bank statement
• Latest Borang B/ BE (supported by tax payment receipt)
• Skim Rumah Pertamaku
• Latest 3-month salary slip
• Latest Borang BE (supported by tax payment receipt)
• Latest EPF statement
• Latest 3-month bank statement/ Savings Account passbook
• Letter of employment
• Special Housing Loan
• Salaried employee
• Latest 3-month salary slip
• Latest Borang BE (supported by tax payment receipt)
• Latest EPF statement
• Latest 3-month bank statement/ Savings Account passbook
• Self-employed
• Latest 6-month bank statement/ Savings Account passbook
• Latest Borang B (supported with tax payment receipt)
• Form 9/ 13 (if the company’s name is changed)
• Business Registration Form: Form 24 and 49

What are the fees included in Hong Leong Bank home loans?

• Stamp duty

  As per the Stamp Duty Act 1949 (Revised 1989).

• Late payment fee

  1% of the amount in arrears.

• Overdraft commitment fee

  1% p.a. on the unutilised overdraft balance.

• Processing fee

  Currently waived.

• Withdrawal of advance payment fee

  RM50 per request.

• Letter of confirmation for epf withdrawal

  RM20 per account.

• Security document Retrieval fee

  RM2 per page.

What are the common terms of home loan?

• Lock-in period

  A period during which you will be penalised if you pay off your home loan earlier than agreed. The fine ranges from 2% to 5% of the total amount.

• Margin of Finance (MOF)

  The amount of money that a bank will lend you for your loan determines how much cash you must pay upfront for the property.

• Interest rates

  It is the amount of money you paid to the bank in addition to the principal amount.

• Valuation

  An estimate of the property’s worth and the stamp duty is calculated based on its value.

• Base rate

  The base rate is the interest rate charged by Bank Negara Malaysia to commercial banks for loans.

• Base Lending Rates (BLR)

  A rate set by each bank based on the cost of borrowing the money to be lent to borrowers.

• Refinancing

  Repaying an existing loan and replacing it with a new one with new terms and conditions.